The starting point for creating the budget is ________.
·
projected results
projected results
·
current year figures
·
YOU WERE SURE AND INCORRECT
forecasted results
·
THE CORRECT ANSWER
actual or prior year budgeted data
·
I DON'T KNOW YET
Which of the following is NOT true about credit card sales and budgets?
ANSWER
INCORRECT
·
YOU WERE SURE AND INCORRECT
A sale is shown on the sales budget, in the month after the sale.
·
The transaction fee associated with the sale is shown in the operating expense budget, in the month of the sale.
·
The amount of funds deposited, which result out of the sale, is shown as a cash receipt on the cash collections budget, in the month of collection.
·
THE CORRECT ANSWER
A sale is shown on the operating expense budget, two months after the sale.
·
I DON'T KNOW YET
The ________ merges the budgeted cash collections and cash payments to project the firm’s ending cash position.
ANSWER
INCORRECT
·
YOU WERE SURE AND INCORRECT
cash collections budget
·
capital expenditure budget
·
THE CORRECT ANSWER
combined cash budget
·
cash payments budget
·
I DON'T KNOW YET
A line of credit ________.
ANSWER
INCORRECT
·
helps the manager when changes in budgeted sales figures occur and adjust for different volumes of activity
·
THE CORRECT ANSWER
is a lending tool the company can use to draw money as needed at a specified rate of interest, for a specified amount of time, paying on the actual amount owed instead of a closed-end note
·
YOU WERE SURE AND INCORRECT
includes outcomes to enhance organizational results and include sustainable practices while planning budgets
·
helps the manager acknowledge how changes in various scenarios might impact the company’s financial results
·
I DON'T KNOW YET
Which of the following answers describes the benefits of the financial budget?
ANSWER
INCORRECT
·
A manager who uses this budget can develop plans for the organization in its entirety.
·
A manager who uses this budget can run the day-to-day operations at the workplace.
·
YOU WERE SURE AND INCORRECT
The manager is consistent and always revises and updates this budget to ensure effective budgeting on an annual basis.
·
THE CORRECT ANSWER
A manager who uses this budget can compile the capital expenditure budget, the cash budget, and the budgeted balance sheet.
·
I DON'T KNOW YET
Which of the following answers describes the benefits of the financial budget?
ANSWER
INCORRECT
·
A manager who uses this budget can develop plans for the organization in its entirety.
·
A manager who uses this budget can run the day-to-day operations at the workplace.
·
YOU WERE SURE AND INCORRECT
The manager is consistent and always revises and updates this budget to ensure effective budgeting on an annual basis.
·
THE CORRECT ANSWER
A manager who uses this budget can compile the capital expenditure budget, the cash budget, and the budgeted balance sheet.
·
I DON'T KNOW YET
The Paper Mill expects to sell 9,000 reams of paper in November and 12,000 in December for $5 each.
What is the total sales revenue for the sales budget during October and November?
ANSWER
INCORRECT
·
$4.50 November; $6 December
·
$450 November; $600 December
·
YOU WERE SURE AND INCORRECT
$4,500 November; $6,000 December
·
THE CORRECT ANSWER
$45,000 November; $60,000 December
·
I DON'T KNOW YET
Benchmarking ________.
ANSWER
INCORRECT
·
THE CORRECT ANSWER
may help a manager motivate employees and provide a measure to evaluate performance
·
helps a manager direct the daily business operations
·
YOU WERE SURE AND INCORRECT
helps a manager coordinate activities with other individuals and groups at the workplace
·
ensures the effective annual business operations for a 12-year period
·
I DON'T KNOW YET
Which of the following is TRUE about credit card sales and budgets?
ANSWER
INCORRECT
·
THE CORRECT ANSWER
A sale is shown on the sales budget, in the same month as the sale.
·
A sale is shown on the operating expense budget, two months after the sale.
·
YOU WERE SURE AND INCORRECT
A sale is shown on the sales budget, two months after the sale.
·
A sale is shown on the sales budget, in the month after the sale.
·
I DON'T KNOW YET
The managerial accountant at Local Produce Services expects to collect 40% of its credit sales in the month after the sale and 60% two months after the sale. Assume credit sales in January were $200,000 and February sales were $100,000.
|
January credit sales
|
$200,000
|
|
February credit sales
|
$100,000
|
What is the anticipated cash collection of credit sales for March?
ANSWER
INCORRECT
·
$14,000
·
$4,100
·
THE CORRECT ANSWER
$140,000
·
YOU WERE SURE AND INCORRECT
$410,000
·
I DON'T KNOW YET
A merchandising company uses a master budget which includes all of the following EXCEPT a(n) ________.
ANSWER
INCORRECT
·
cost of goods sold budget
·
THE CORRECT ANSWER
direct labor budget
·
YOU WERE SURE AND INCORRECT
inventory budget
·
purchases budget
·
I DON'T KNOW YET
Customer World expects the credit card company to deposit funds in their business account for their sales where a customer uses a credit card to pay.
If Customer World earned $90 from a sale and the transaction fee was $1.25, how much should Customer World expect the credit card company to deposit into their business account?
ANSWER
INCORRECT
·
THE CORRECT ANSWER
$88.75
·
$8.75
·
YOU WERE SURE AND INCORRECT
$8.57
·
$88.57
·
I DON'T KNOW YET
Actual or prior year budgeted data is ________.
ANSWER
INCORRECT
·
historical data and should not be used in the budget process
·
THE CORRECT ANSWER
the starting point for creating the budget
·
YOU WERE SURE AND INCORRECT
filed in the storage for next year and only used to create financial statements
·
sent to the accountant only for business tax return purposes
·
I DON'T KNOW YET
Which of the following is a benefit of budgeting which helps a manager motivate employees and evaluate performance?
ANSWER
INCORRECT
·
Coordination and communication
·
Rolling budget
·
YOU WERE SURE AND INCORRECT
Planning
·
THE CORRECT ANSWER
Benchmarking
·
I DON'T KNOW YET
Which of the following is important to a manager at a merchandising company when preparing the master budget?
ANSWER
INCORRECT
·
THE CORRECT ANSWER
The length of time between sales and deposits
·
That a sale is shown on the production budget, one month after a sale
·
YOU WERE SURE AND INCORRECT
The percentage of sales made by credit cards that is not applicable to the merchandising firm
·
That cash from a sale is shown on the operating budget, one month after the sale
·
I DON'T KNOW YET
The Paper Mill expects to sell 6,000 reams of paper in October and 8,000 in November for $6 each.
What is the total sales revenue for the sales budget during October and November?
ANSWER
INCORRECT
·
THE CORRECT ANSWER
$36,000 October; $48,000 November
·
YOU WERE SURE AND INCORRECT
$360 October; $480 November
·
$3.60 October; $4.80 November
·
$3,600 October; $4,800 November
·
I DON'T KNOW YET
The total sales revenue for the sales budget during October and November is $36,000 October; $48,000 November. The other answers are not correct.
October: 6,000 × $6 = $36,000
November: 8,000 × $6 = $48,000.
Monumental Industries manufactures desks. Each desk requires .30 direct labor hours to produce. Monumental has a direct labor rate of $12 per direct labor hour. The managerial accountant reported that the production budget indicates that the production schedule consists of 800 desks in September and 900 desks in October.
What is the total direct labor budgeted cost together for September and October?
ANSWER
INCORRECT
·
$316
·
THE CORRECT ANSWER
$6,120
·
YOU WERE SURE AND INCORRECT
$1,260
·
$612
·
I DON'T KNOW YET
The total direct labor budgeted cost together for September and October is $6,120. The other answers are not correct.
800 + 900 = 1,700
1,700 × .3 = 510 hours
510 hours × $12 = $6,120
Customer World expects credit card companies to deposit funds in their business account for their sales where a customer uses a credit card to pay.
If Customer World earned $80 from a sale and the transaction fee was $1.50, how much should Customer World expect the credit card company to deposit into their business account?
ANSWER
INCORRECT
·
$7.58
·
YOU WERE SURE AND INCORRECT
$8.57
·
$87.50
·
THE CORRECT ANSWER
$78.50
·
I DON'T KNOW YET
Customer World expects the credit card company to deposit $78.50 into the business account. The other answers are not correct.
$80.00 - $1.50 = $78.50
Which of the following is NOT important to a manager at a merchandising company when preparing the master budget?
ANSWER
INCORRECT
·
The different transaction fees charged for debit and credit card transactions
·
YOU WERE SURE AND INCORRECT
The length of time between sales and deposits
·
The total percentage of credit and debit card sales
·
THE CORRECT ANSWER
The production budget
·
I DON'T KNOW YET
The production budget is NOT important to a manager at a merchandising company when preparing the master budget. Merchandising firms do NOT prepare a production budget. The other answers are examples of things that are important when preparing the master budget.
Which of the following is NOT a benefit to a merchant who accepts credit and debit card transactions?
ANSWER
INCORRECT
·
The acceptance of credit cards enhances sales.
·
YOU WERE SURE AND INCORRECT
The acceptance of credit cards decreases the cost of returned checks.
·
The acceptance of credit cards increases the speed of cash flows.
·
THE CORRECT ANSWER
The acceptance of credit cards slows the cash flows.
·
I DON'T KNOW YET
Which of the following is TRUE about credit card sales and budgets?
ANSWER
INCORRECT
·
A sale is shown on the operating expense budget, two months after the sale.
·
A sale is shown on the sales budget, in the month after the sale.
·
THE CORRECT ANSWER
A sale is shown on the sales budget, in the same month as the sale.
·
YOU WERE SURE AND INCORRECT
A sale is shown on the sales budget, two months after the sale.
·
I DON'T KNOW YET
A ________ is a lending tool the company can use to draw money as needed at a specified rate of interest, for a specified amount of time, paying on the actual amount owed instead of a closed-end note.
ANSWER
INCORRECT
·
sensitivity analysis
·
THE CORRECT ANSWER
line of credit
·
YOU WERE SURE AND INCORRECT
sustainable practice
·
flexible budget
·
I DON'T KNOW YET
The managerial accountant at Hill’s Development Services expects to collect 30% of its credit sales in the month after the sale and 40% two months after the sale. Assume credit sales in December were $100,000 and November sales were $90,000.
|
November credit sales
|
$90,000
|
|
December credit sales
|
$100,000
|
What is the anticipated cash collection of credit sales for January?
ANSWER
INCORRECT
·
THE CORRECT ANSWER
$66,000
·
$606
·
YOU WERE SURE AND INCORRECT
$6,000
·
$660
·
I DON'T KNOW YET
The total cash the managerial accountant expects to collect in January is $66,000. The other answers are not correct.
December sales 30% × $100,000 = $30,000
November sales 40% × $90,000 = $36,000
$30,000 + $36,000 = $66,000
Strategic planning ________.
ANSWER
INCORRECT
·
refers to a budget which provide a means to absorb the costs of excessive budgeting expenses or underassessment of budgeting revenue
·
THE CORRECT ANSWER
entails the planning and establishment of long-term goals which extend years into the future
·
YOU WERE SURE AND INCORRECT
involves a budget which starts at a zero balance and all funds a manager may use must be justified in the budget
·
involves multiple levels of management including lower-level managers who provide real-world knowledge for the establishment of goals
·
I DON'T KNOW YET
Which of the following is a benefit to a merchant who accepts credit and debit card transactions?
ANSWER
INCORRECT
·
The acceptance of credit cards reduces sales.
·
THE CORRECT ANSWER
The acceptance of credit cards increases the speed of cash flows.
·
YOU WERE SURE AND INCORRECT
The acceptance of credit cards increases the cost of returned checks.
·
The acceptance of credit cards has no impact on cash flows.
·
I DON'T KNOW YET
Which of the following is NOT a benefit to a merchant who accepts credit and debit card transactions?
ANSWER
INCORRECT
·
THE CORRECT ANSWER
The acceptance of credit cards slows the cash flows.
·
The acceptance of credit cards increases the speed of cash flows.
·
YOU WERE SURE AND INCORRECT
The acceptance of credit cards enhances sales.
·
The acceptance of credit cards decreases the cost of returned checks.
·
I DON'T KNOW YET
Which of the following is TRUE about credit card sales and budgets?
ANSWER
INCORRECT
·
THE CORRECT ANSWER
A sale is shown on the sales budget, in the same month as the sale.
·
A sale is shown on the sales budget, in the month after the sale.
·
YOU WERE SURE AND INCORRECT
A sale is shown on the operating expense budget, two months after the sale.
·
A sale is shown on the sales budget, two months after the sale.
·
I DON'T KNOW YET
Which of the following is a benefit to a merchant who accepts credit and debit card transactions?
ANSWER
INCORRECT
·
THE CORRECT ANSWER
The acceptance of credit cards increases the speed of cash flows.
·
YOU WERE SURE AND INCORRECT
The acceptance of credit cards reduces sales.
·
The acceptance of credit cards has no impact on cash flows.
·
The acceptance of credit cards increases the cost of returned checks.
·
I DON'T KNOW YET
Which of the following is TRUE about credit card sales and budgets?
ANSWER
INCORRECT
·
YOU WERE SURE AND INCORRECT
A sale is shown on the operating expense budget, two months after the sale.
·
A sale is shown on the sales budget, two months after the sale.
·
A sale is shown on the sales budget, in the month after the sale.
·
THE CORRECT ANSWER
A sale is shown on the sales budget, in the same month as the sale.
·
I DON'T KNOW YET
Which of the following is a benefit to a merchant who accepts credit and debit card transactions?
ANSWER
INCORRECT
·
The acceptance of credit cards increases the cost of returned checks.
·
The acceptance of credit cards has no impact on cash flows.
·
YOU WERE SURE AND INCORRECT
The acceptance of credit cards reduces sales.
·
THE CORRECT ANSWER
The acceptance of credit cards increases the speed of cash flows.
·
I DON'T KNOW YET
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